Dentons US LLP

10/22/2021 | Press release | Archived content

Dentons advises the joint administrators of LB Holdings Intermediate 2 Limited

October 22, 2021

London-Dentons has advised the joint administrators of LB Holdings Intermediate 2 Limited in the case of Lehman Brothers Holdings Scottish LP3 v. Lehman Brothers Holdings plc (and others) [2021].

The judgment, handed down on 20 October by the Court of Appeal, concerned the order of priority for payment of subordinated debt which was issued for regulatory capital purposes. The ruling rejects arguments made by one subordinated creditor that the different subordinated instruments should be paid pari passu. The appeal judges found that, on a proper construction of the terms of the instruments, some subordinated claims took priority over others. The decision may help unlock a large amount of funds for our clients, enabling them to make distributions to their subordinated creditors.

Partner Tessa Blank led on the matter with support from consultant Nigel Barnett and senior associate Jonathan Sears.

About Dentons

Dentons is the world's largest law firm, connecting top-tier talent to the world's challenges and opportunities with 20,000 professionals including 12,000 lawyers, in more than 200 locations, in more than 80 countries. Dentons' polycentric and purpose-driven approach, commitment to inclusion and diversity, and award-winning client service challenge the status quo to advance client interests.